US markets gain; S&P, Dow hit record high

The US markets closed higher on Monday, with best gains in nearly a month that sent both the S&P 500 and the Dow Jones Industrial Average to record levels. Investors meanwhile also kept a close eye on geopolitical developments, but they seemed to shrug off Sunday's vote in a region of eastern Ukraine that showed an overwhelming majority in favor of independence. Ukraine and several Western countries have condemned the referendum, organized by pro-Russian separatists. On the economy front, the US government recorded a budget surplus of $107 billion in April, a smaller windfall than in the same month last year. The surplus for April is $6 billion, or 5%, lower than in April 2013. April is usually a surplus month, as Treasury sees a spate of tax payments from individuals and corporations. Though smaller than last year’s, the April surplus contributes to a steady decline in the deficit for fiscal 2014. For the first seven months of the fiscal year that began October 1, the deficit is $306 billion. That is $181 billion, or 37%, lower than it was for the same period in fiscal 2013. Spending, meanwhile, was 5% higher than in April 2013. The Dow Jones Industrial Average was up by 112.13 points or 0.68 percent, to 16,695.47, the Nasdaq Composite added 71.99 points or 1.77 percent, to 4,143.86 while, the S&P 500 gained 18.17 points or 0.97 percent, to close at 1,896.65. The Indian ADRs closed in green on Monday; Tata Motors was up 2.09%, Infosys was up 1.48%, ICICI Bank was up 1.14%, HDFC Bank was up 1.14% and Dr. Reddy’s Lab was up 0.54%.